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2025-09-17 19:53:57
[South African Treasury: Plans to launch Eurobonds to supplement cash reserves] The South African Treasury said that after repaying $2 billion in bonds that matured this week, it is considering entering the European bond market to supplement its cash reserves. The head of the Treasury's funds and liability management department said that these bonds were redeemed with existing cash reserves and foreign exchange raised from channels such as multilateral lenders. In the budget review on March 12, the Treasury said it plans to raise $14.6 billion over the next three years to meet its foreign exchange commitments. The funds will be raised from multilateral development banks, international financial institutions and capital markets. South Africa's borrowing costs in the international capital markets are at their lowest level in more than seven years. The yield premium that investors require to hold South African dollar bonds rather than U.S. Treasuries, the sovereign spread, has narrowed by about 30 basis points this month to 249 basis points, the lowest level since April 2018.
